- The Ministry of Finance aims to offer 26 treasury bills and bonds worth EGP 418 billion during the month of June, including 16 treasury bills worth EGP 390 billion and 10 bonds worth EGP 28 billion.
- This comes as part of a larger plan through which the government aims to borrow EGP 1.491.5 trillion from the local market during the fourth quarter of fiscal year 2023/2024, to pay previous debt instrument maturities and finance the state’s general budget deficit.
- The plan includes the Central Bank, which is undertaking this task on behalf of the government, issuing treasury bills worth EGP 120 billion for a period of 91 days, EGP 100 billion for a period of 182 days, EGP 90 billion for a period of 273 days, while 364-day bills worth EGP 80 billion are scheduled to be issued during June.
- It also includes issuing 546-day ZeroCoupon bonds worth EGP 16 billion, 3-year bonds worth EGP 11 billion, and 5-year bonds worth EGP 1 billion.
- The Ministry of Finance previously revealed that the outstanding balances of local treasury bills and bonds had reached about 4.966 trillion pounds by the end of January 2024.
- According to the latest report published by the Ministry on its website, the volume of outstanding balances of treasury bills amounted to approximately 2.734 trillion pounds, while the volume of outstanding balances of treasury bonds amounted to approximately 2.232 trillion pounds.
- It is noteworthy that Dr. Mohamed Maait, Minister of Finance, had issued a decision to develop the “primary dealers” system in government debt instruments, as they are the primary and secondary market makers, with the aim of activating the government securities market and reducing the burden of debt service by approving a package of incentives for these dealers, which helps in enhancing liquidity in the secondary market, and is consistent with the Ministry of Finance’s strategy to develop the government securities market, which aims to diversify financing tools in order to attract new segments of investors in government debt instruments within Egypt, including individuals.
- According to Moait, this decision contributes to achieving the objectives of the Ministry of Finance’s strategy in managing the debt portfolio in a balanced manner, helping to reduce the cost of servicing government debt and reducing refinancing risks, while ensuring that the financing needs of the state’s general budget are met.
